3 Million U.S. Workers Have Not Resumed Job Search After COVID Pandemic Layoffs

About 3 million U.S. workers who were laid off during the COVID-19 pandemic stopped looking for work and have yet to resume their job searches, the Associated Press reported.

Hiring has slowed in the past two months, even as employers have posted a near-record number of job openings. Fewer layoffs have happened as well, as many businesses are struggling to keep what workers they have.

Economists hoped more people would find work in September as schools reopened, lessening child care constraints, and enhanced unemployment aid ended across the U.S. However, employers added just 194,000 jobs last month.

Businesses are still struggling to find workers as many have either stopped searching or are holding out for better pay than offered pre-pandemic. Employers in many fields, including health care, are faced with severe staffing shortages.

For more reporting from the Associated Press, see below.

USPS Job Fair
About 3 million American workers who were laid off during the pandemic have yet to resume their job search. Above, applicants receive help with their applications during a job fair at a post office in Los Angeles on September 30, 2021, as the U.S. Postal Service looks to fill 40,000 seasonal-worker positions in preparation for the holidays. Frederic J. Brown/AFP via Getty Images

The number of Americans applying for unemployment benefits fell to its lowest level since the pandemic began, a sign the job market is still improving even as hiring has slowed in the past two months.

Unemployment claims dropped 36,000 to 293,000 last week, the second straight drop, the Labor Department said Thursday. That's the smallest number of people to apply for benefits since the week of March 14, 2020, when the pandemic intensified, and the first time claims have dipped below 300,000. Applications for jobless aid, which generally track the pace of layoffs, have fallen steadily since last spring as many businesses, struggling to fill jobs, have held onto their workers.

In a bright spot, the unemployment rate fell to 4.8 percent from 5.2 percent, though some of that decline occurred because many of those out of work stopped searching for jobs, and were no longer counted as unemployed. The proportion of women working or looking for work fell in September, likely because of difficulties finding child care or because of schools disrupted by COVID-19 outbreaks.

At the same time, Americans are quitting their jobs in record numbers, with about 3 percent of workers doing so in August. Workers have been particularly likely to leave their jobs at restaurants, bars, and hotels, possibly spurred by fear of the delta variant of COVID-19, which was still spreading rapidly in August.

Other workers likely quit to take advantage of higher wages offered by businesses with open positions. Average hourly pay rose at a healthy 4.6 percent in September from a year earlier, and for restaurant workers wage gains in the past year have topped 10 percent.

The number of people continuing to receive unemployment aid has also fallen sharply, mostly as two emergency jobless aid programs have ended. In the week ending Sept. 25, the latest data available, 3.6 million people received some sort of jobless aid, down sharply from 4.2 million in the previous week. A year ago, nearly 25 million people were receiving benefits.

The emergency programs provided unemployment payments for the first time to the self-employed and gig workers, and those who were out of work for more than six months. More than 7 million Americans lost weekly financial support when those two programs expired September 6. An extra $300 in federal jobless aid also expired that week.

Many business executives and Republican politicians said the extra $300 was discouraging those out of work from taking jobs. Yet in about half the states, the additional checks were cutoff as early as mid-June, and those states have not seen faster job growth than states that kept the benefits.

Job Market U.S.
The number of Americans applying for unemployment benefits fell to its lowest level since the pandemic began, a sign the job market is still improving even as hiring has slowed in the past two months. Above, a hiring sign sits on a display in a clothing store on October 9, 2021, in Sioux Falls, South Dakota. David Zalubowski/AP Photo